Posted May 15, 2015
WASHINGTON, D.C. – The National Council of Textile Organizations (NCTO) hailed U.S. House passage of the National Defense Authorization Act on May 15 and the U.S. Senate passage of two pieces of trade legislation addressing trade preference programs and customs enforcement a day earlier.
The Defense Authorization bill (H.R. 1735) contained important language supporting the Berry Amendment authored by Congressman Jim McGovern (D-Mass.) NCTO commended Rep. McGovern for offering this amendment that ensures that a provision in Section 854 of H.R. 1735 would not seriously harm the U.S. textile, apparel and footwear industry. Section 854 proposes to increase the Simplified Acquisition Threshold procedure (SAT) from $150,000 to $500,000, meaning that contracts falling below the SAT level would not be subject to the Berry Amendment.
The McGovern amendment, however, exempted Berry contracts from this increased SAT threshold and instead mandates that the current $150,000 threshold level remain in place for all textile and apparel purchases under Berry.
Among other things, the Berry Amendment ensures that U.S. warfighters stay protected in domestically produced personal protective equipment. The Berry Amendment has spurred substantial research, development and innovation that ensures that America’s warfighters have the most advanced and effective textile materials available, the NCTO said in a release. In addition, Berry helps to spur U.S. manufacturing, investment, employment and exports, the council added.
NCTO hails passage of trade legislation
Key facts about the U.S. textile industry
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U.S. textile shipments totaled more than $56.7 billion in 2014.
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The U.S. textile industry is the third largest exporter of textile products in the world. Exports of all textile products were nearly $18.3 billion 2014. Total textile and apparel exports were a record $24.4 billion in 2014.
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Nearly two-thirds of U.S. textile exports during 2014 went to its Western Hemisphere free trade partners. The U.S. textile industry exported to 199 countries, with 25 countries buying $100 million or more a year.
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The U.S. textile industry supplies more than 8,000 different textile products per year to the U.S. military.
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The United States is the world leader in textile research and development, with private textile companies and universities developing new textile materials such as conductive fabric with antistatic properties, electronic textiles that monitor heart rate and other vital signs, antimicrobial fibers, antiballistic body armor for people and the machines that carry them, and new garments that adapt to the climate to make the wearer warmer or cooler.
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The U.S. textile industry invested $20.5 billion in new plants and equipment from 2001 to 2013. And recently producers have opened new fiber, yarn, and recycling facilities to convert textile waste to new textile uses and resins.
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U.S. textile mills increased productivity by 34 percent between 2002 and 2012, making textiles one of the top industries among all industrial sectors in productivity increases.
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In 2014, textile employees on average earned 143 percent more than apparel store employees ($586.43 per week vs. $241.69) and received health care and pension benefits.
Source: NCTO
“It is imperative that Congress preserve the integrity of the Berry Amendment through policies like Congressman McGovern’s amendment,” the NCTO said. “Doing so will ensure the highest level of performance and safety for our U.S. military.
Senate legislation
After passing H.R. 1295 and H.R. 644, the Senate now moves to consider another trade package, including Trade Promotion Authority (TPA) and Trade Adjustment Assistance (TAA).
In a news release, the NCTO urged the chamber to pass a “clean” TPA bill without harmful amendments that will damage U.S. textile jobs, manufacturing and exports.
The Senate voted 97-1 on H.R. 1295, an act to extend the African Growth and Opportunity Act (AGOA), the Generalized System of Preferences, the preferential duty treatment program for Haiti, and for other purposes. H.R. 644, an act to reauthorize trade facilitation and trade enforcement functions and activities, and for other purposes, was approved 78-20.
According to the NCTO, the U.S. overall textile industry – from textile fibers to apparel –employed 499,500 people in 2014, and textile companies alone employed 232,100 people. The U.S. government estimates that one textile job in this country supports three other jobs, the NCTO said.